In a note to investors, Chant West said the average median growth fund saw returns of 3 per cent, significantly below the last three years, which included a high of 15.6 per cent for 2012/13 and a low of 9.8 per cent in 2014-15.
Chant West director Warren Chant said the reduced returns shouldn’t be a concern to members however, as the cumulative return since the GFC sits at around 80 per cent, or 8.8 per cent per annum.
“That’s about 6.5% above the annual rate of inflation, so it’s comfortably ahead of the typical longer-term return objective for these funds which is to beat inflation by between 3% and 4% annually,” he said.
Mr Chant said this year’s positive returns in the face of “a very uncertain” global economy were indicative of diversification at play”.
“These funds are so well diversified across a wide range of growth and defensive asset sectors, including alternative and unlisted assets, they can successfully smooth out returns when listed share markets are struggling,” he said.
Fortnum hires former Centric Wealth CEO
SMSF Association names new chair
Avenir Capital hires investment director
Striking a balance between security and innovation
Backing China in the Year of the Dog
The benefits of good data governance